Financial services group Mandatum has teamed up with Morgan Stanley Real Estate Investing to invest in Finnish residential real estate.
The duo have launched the venture with the acquisition of around 360 units across seven residential properties, four of which were previously owned by Mandatum.
The seed portfolio has an overall valuation of more than €70m, with €26m of that total representing assets divested by Mandatum into the new venture.
Mandatum will act as asset manager and hold a minority interest in the venture, which targets residential acquisitions across the Helsinki Metropolitan Area.
Emilia Riikonen, head of real estate investments at Mandatum, said: “This transaction is an indication of the revitalisation underway in the Finnish real estate market. We are delighted to launch a partnership with Morgan Stanley Real Estate Investing and introduce an investment strategy aimed at driving strong growth in residential properties.
“This collaboration further expands our high-profile international partnerships.”
Arjun Bathla, executive director of Morgan Stanley Real Estate Investing, said: “We are excited to begin this new venture with a strong partner like Mandatum, which brings years of expertise and an exceptional track record of creating value in real estate.
“With strong underlying fundamentals in the Finnish residential market, we believe it is well-positioned for growth and new investments.”
JLL acted as the sole strategic and commercial advisor to Mandatum. Roschier acted as Mandatum’s legal advisor.
Pauliina Rantsi, deputy head, capital markets, JLL Finland, said: “This partnership is a significant vote of confidence in the Helsinki residential market and highlights the renewed appetite from global capital for well-structured Finnish real estate opportunities.”
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